Buy-Side Advisory Services to CDC Group for Port Assets in Africa
Introduction
MTBS was hired by CDC Group, an impact investment group based in the United Kingdom, to assist with the acquisition of minority shares in three ports in Africa owned and operated by DP World: the port of Sokhna (Egypt), the port of Berbera (Somaliland) and in the port of Dakar (Senegal – also including the greenfield port of Ndayane). MTBS was appointed as commercial due diligence advisor and was responsible for the market assessment, traffic forecasting, opex analysis, capex evaluation, high-level cost-benefit analyses and various analyses in relation to the impact of Covid-19. In addition, MTBS reviewed some of the sell-side financial model assumptions and provided inputs for the valuation.
Project Details
DATE
July 2019 – November 2021
CLIENT
CDC Group
PROJECT TYPE
Buy-Side Advisory Services
GEOGRAPHY
Egypt, Somaliland, Senegal – Africa
Outcomes
On 12 October 2021, CDC Group and DP World announced they will jointly invest up to $1.7 billion in logistics infrastructure in Africa. The investments will be focused on the ports of Sokhna, Ndayane and Berbera. The joint investment includes a host of major (greenfield) investments in port infrastructures that will help improve the ports’ competitive value and ultimately help create streamlining opportunities across the supply chain.
MTBS Added Value
MTBS used her market expertise in Africa to identify the various strengths and threats posed by the three target assets and their respective market value propositions both at home and in their respective sub-regions. MTBS’ specific knowledge in the target markets and target regions, as well as directly with the selling entity, helped produce a streamlined due diligence process. MTBS’ critical and fair review of the business case helped guide her client to a close landmark investment.
